Stocks Slightly Lower into Final Hour on Rising Eurozone/Emerging Markets Debt Angst, Yen Strength, Profit-Taking, REIT/Restaurant Sector Weakness

Broad Equity Market Tone:

• Advance/Decline Line: Lower
  

• Sector Performance: Most Sectors Declining
  

• Volume: Below Average

• Market Leading Stocks: Performing In Line

Equity Investor Angst:

• Volatility(VIX) 10.97 -1.61%

• Euro/Yen Carry Return Index 144.69 -.51%

• Emerging Markets Currency Volatility(VXY) 6.51 -1.21%

• S&P 500 Implied Correlation 50.10 -4.04%

• ISE Sentiment Index 121.0 +.83%

• Total Put/Call .72 -13.25%

• NYSE Arms .70 -34.59% 

Credit Investor Angst:

• North American Investment Grade CDS Index 57.51 +.35%

• European Financial Sector CDS Index 59.49 +3.26%

• Western Europe Sovereign Debt CDS Index 28.55 +1.67%
• Asia Pacific Sovereign Debt CDS Index 74.36 -.92%

• Emerging Market CDS Index 237.51 +1.02%

• China Blended Corporate Spread Index 313.20 -.62%
• 2-Year Swap Spread 13.75 -.75 basis point

• TED Spread 20.0 unch.

• 3-Month EUR/USD Cross-Currency Basis Swap -7.25 +1.0 basis point

Economic Gauges:

• 3-Month T-Bill Yield .03% unch.

• Yield Curve 220.0 +1.0 basis point

• China Import Iron Ore Spot $93.60/Metric Tonne -.74%

• Citi US Economic Surprise Index -13.20 unch.

• Citi Emerging Markets Economic Surprise Index -11.90 +1.3 points

• 10-Year TIPS Spread 2.20 unch.

Overseas Futures:

• Nikkei Futures: Indicating -5 open in Japan

• DAX Futures: Indicating -2 open in Germany

Portfolio: 

• Slightly Lower: On losses in my medical sector longs and emerging markets shorts

• Disclosed Trades: None

• Market Exposure: 50% Net Long